Debt Relief For GenCos: FG Weighs N4tn Payment Plan Submitted By Edun

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has revealed that he presented a proposal to the Federal Executive Council (FEC) to enable the federal government to clear the N4 trillion debt owed to power generation companies.

According to iReporter Online, Edun made the disclosure on Tuesday while briefing state house correspondents after the FEC meeting presided over by President Bola Tinubu.

Edun explained that during the council meeting, he submitted a memo on refinancing outstanding obligations in the electricity industry totaling N4 trillion. “I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion,” he said.

According to iReporter Online, although the financing plan was not fully approved immediately, implementation has already begun under the guidance of the Debt Management Office and other experts.

He added that the first phase of the process is expected to be completed within three to four weeks, marking significant progress in resolving the debt.

Refinancing, as Edun clarified, involves replacing an existing loan with a new one, effectively paying off a debt through another debt obligation.

According to iReporter Online, power generation companies (GenCos) had warned in April 2025 that the N4 trillion unpaid debt owed by the federal government and stakeholders for electricity generated could threaten their operations.

A breakdown of the debt includes N2 trillion for 2024 and N1.9 trillion in legacy debts. Earlier in May, Adebayo Adelabu, Minister of Power, noted that the federal government may borrow to settle part of the N4 trillion debt owed to GenCos.

In addition to addressing the electricity debt, Edun said the federal government is seeking $125 million from the Islamic Development Bank (IsDB) to fund infrastructure projects in Abia State.

The loan will finance the construction of approximately 35 kilometres of roads in Umuahia and 126 kilometres in Aba. “In addition to our other priorities, I presented a memo on infrastructure support from the Islamic Development Bank totalling $125 million for Abia State,” he said.

Edun added that this financing will enhance critical road networks connecting Umuahia and Aba, boosting transport efficiency and economic activities in the region.

”IREPORTER REPORTS”